Advanced magnetic stripe bridge (AMSB)

ABSTRACT

A novel bridge device and accompanying methodology which link the world of the smart cards to that of the magnetic finance cards is described. This bridge device is called the Magnetic Stripe Bridge (MSB), whose primary function is to interface an ordinary or naked smart card, with just a smart chip embedded in, to a magnetic card reader for credit transaction without requiring alteration of the existing card processing infrastructure. This is done using techniques which include magnetic stripe signal emulation. Thus, any smart card is effectively transformed via the use of the MSB into an ordinary magnetic finance card and is admissible for use by any conventional magnetic card reader. Through this MSB and the accompanying methodology, secure smart cards can now be deployed everywhere, including on the Internet, thus significantly reducing the current extensive magnetic finance card fraud and identity theft. In baseline and alternate preferred embodiments, the MSB is adapted for use with lateral, swipe type magnetic card readers. Via an advanced preferred embodiment, an improved AMSB is adapted to enable usage with both swipe-type readers, as well as with ATM-like terminals which require virtually full longitudinal insertion of the card being used.

TECHNICAL FIELD

[0001] The present invention is in the field of electronic devices andequipment used in the processing and/or facilitation of financial andsecurity smart card transactions (such as credit cards, debit cards,access cards etc.) using the existing magnetic card storage mediumprocessing infrastructure.

BACKGROUND

[0002] Credit cards have been in use in the US and around the world fordecades. Unauthorized or fraudulent use of credit card purchases forgoods and services has been with the credit card and financial cardindustry ever since its inception. At least in the US, the culprit hasgenerally been attributed to the use of multiple-track magnetic stripeor magstripe (typically three tracks) for storing all the pertinentpersonal and credit card account information (in tracks 1 and 2) of thecardholder. The information contained in the magnetic stripe (typicallyTrack 2 for credit cards) is not visible or readable directly from thecard except with the use of a special decoding equipment such as amagnetic stripe reader or magnetic credit card reader commonly used intoday's brick-and-mortar retail world for credit purchases of goods andservices. It is a well-known fact that the cardholders vital informationstored in tracks 1 or 2 of the magnetic stripe on the back of creditcards can be easily “skimmed” or stolen. Consequently anyone can inprinciple create illegally any number of these credit cards forfraudulent use and identity theft purposes. This indeed is the crux ofcredit card fraud and cardholder identity theft problems in the UStoday.

[0003] The advent of the so-called smart cards (smart credit or financecards) first came about in Europe about three decades ago offered a lotof hope, then and now, for solving the credit card fraud and identitytheft problems. Plastic cards are used as the carrier of microchipswhich can store much more information and much more securely than themagstripes counterparts. Indeed, with the development of moderncryptography technology in recent years, which enabled smart cards tohave a high degree of security, the popularity of smart cards and theiracceptance as financial and banking instruments by the consumers, atleast in Europe, started to grow and flourish during the past decade.

[0004] Despite a great deal of efforts in advertisement dollars and theinvestment of literally hundreds of millions of dollars in systeminfrastructure made by numerous banking associations during the pastfive years or more, most notably American Express in the rollout oftheir so-called “Blue Card” about two years ago, smart cards are simplynot making any significant headway into the US marketplace. In otherwords, only a very small fraction of the US credit card holders todayare using smart cards for credit purchases in the brick-and mortarretail world. For the very small percentage of smart card usage, most ofthem are used on the Internet.

[0005] Contrary to the situation in Europe today, where smart cards arethe main stay for credit purchases for goods and banking services by thegeneral populace, the behavior of most Americans towards smart cardusage and acceptance in the US is generally considered as illogical,ridiculous (according to the Europeans) and difficult to explain.However, one can probably better understand the current smart cardsituation in the US by simply noting the fact that it took literally20-25 years before the general public in the US accepts the use of theATM (Automatic Teller Machine) cards for money withdrawal from thebanks. The Bank of America first introduced such cards to the consumersin the early 1970's and it is not until recently (starting a few yearsago) that the American public embraces this wonderful convenience.

[0006] Thus one can argue that it is the ultra-conservatism of theAmerican public towards the acceptance of new ideas and concepts aboutmoney that best explains why smart cards fail to be widely accepted inthe US today. In addition to this seemingly simple but truistic reason,there are other economical factors that might also contribute to theirbahavior. First of all, one must not forget about the fact that thereare at present over 20 millions magnetic card readers in use in the UStoday. That represents almost $10B worth of hardware that have to bethrown away if one were to replace them with new smart card readers.That is indeed a lot of money to be written off by the merchants fromthe economical standpoint and something not likely to happen unlessthere is an overwhelming reason for them to do so. As far as themerchants are concerned, it is not just the magnetic card readers thatthey have to replace which to them is hard-earned money. They also haveto retrain their employees to use the new smart card readers whichrepresents additional business expenses that they have to bear. That isthe reason why the merchants themselves are not enthusiastic inswitching from the magnetic cards to the smart cards. When it comes tothe question of who are influencing who between the consumers and themerchants, it is the latter that have the upper hand. It is more likelyfor the consumers to change over to use the smart cards if they find outthat their magnetic cards are no longer universally accepted by themerchants.

[0007] Finally since the American economy is the number one economy inthe world, whatever the Americans accept or not accept in financial orbusiness undertakings usually has a tremendous impact on the actions andreactions for the rest of the world. Thus the fact that Americans todaydo not embrace the use of smart cards in the US, it has an important butregressive or unfavorable impact on the rest of the global citizens andbusinesses. Case in point, when Americans travel overseas, either forbusiness or for pleasure, they only carry magnetic credit cards. Thatpretty much forces the merchants of other parts of the world to alsoequip themselves with magnetic card readers in addition to smart cardreaders. Otherwise they might stand to lose the business of thoseAmerican travelers that happen to visit their territories. As for theEuropeans, when they travel to the US either on business or forpleasure, they have to take with them magnetic credit cards otherwisethey would not be able to purchase on credit goods or services in theUS. Thus there exists an urgent need for a novel device and methodologythat can serve as a “bridge” in order to link the magnetic cards worldto that of the smart cards. In other words, the American consumers mustbest be provided with smart cards that would be compatible and useablewith the magnetic card processing infrastructure in the US. The sameholds true for world citizens other than Americans. They must also beprovided with smart cards that can be recognized for use by the magneticcard readers in the US. Of course by being able to successfully link thetwo credit card worlds, the magnetic card and the smart card can coexistuntil such time that the smart card would ultimately be the one to useby choice of technology, common sense and uniformity.

[0008] Over the past two decades, literally dozens of devices andmethodologies have been advanced and patented. They all share the commongoal of trying to drastically reduce or totally eliminate all creditcard frauds and identity thefts in those parts of the world today,including the US, where magnetic credit and debit cards, and not smartcards, are still widely in use for financial and credit transactions. Asalluded to briefly above, since the rampant credit card frauds andidentity thefts are still very much with us in the US today, it isevident that none of the ideas advanced and patented to date,implemented or otherwise, have been working effectively at all toalleviate this situation. In particular, no one has ever advanced, untilthe present invention, the idea of taking advantage of the securedaspects of the smart card and somehow teaming or working in tandem withit to arrive at a viable approach to solving the credit card frauds andidentity thefts problem.

[0009] Instead, almost all of these novel devices and methodologiesadvanced and patented to date focus only in how to modify the currentmagnetic credit and debit cards. New operating features have been addedto them with new processing algorithms implemented including theinstallation of new and more advanced electronic subsystems in order torender these magnetic credit and debit cards and/or systems fraudresistant under all manners of conditions wherein they are used. One cancategorize all the prior art in this field generally into three groups.Group one has to do with the novel improvement, new features andconfigurations for standalone cards. Group two has to do with theadvancement of new methodologies in the processing and transactionsystems for financial cards. Group three has to do with the advancementof card systems hardware encompassing new technologies in electroniccomponents, devices and subsystems.

[0010] Examples of Group I prior art inventions relating to the novelimprovement, new features and configuration for standalone cards aredisclosed in the following patents: U.S. Pat. No. Inventor Date4,614,861 Parlov et al. Sep. 30, 1986 4,701,601 Francini et al. Oct. 20,1987 4,786,791 Hodama Nov. 22, 1988 4,791,283 Burkhardt Dec. 13, 19884,868,376 Lessin et al. Sep. 19, 1989 5,130,519 Bush et. al Jul. 14,1992 42 02 998 (German) Kreft Aug. 5, 1993 5,317,636 Vizcaino May 31,1994 5,434,398 Goldberg Jul. 18, 1995 5,789,732 MaMahon et al. Aug. 4,1998 5,,955,961 Wallerstain Sep. 21, 1999 6,089,451 Krause Jul. 18, 20006,095,416 Grant et. al Aug. 1, 2000 6,188,309 B1 Levine Feb. 13,20016,206,293 B1 Gutman et al. Mar. 27, 2001 6,223,984 B1 Renner et al. May1, 2001 6,257,486 B1 Teicher et al. Jul. 10, 2001

[0011] U.S. Pat. No. 4,614,861 issued to Parlov et al. in 1986 disclosesa unitary, self-contained credit card which has the ability to verify apersonal identification number (PIN) which is entered directly into thecard by way of a keypad without the use of an outside terminal.Furthermore, a transaction identification code (TIC), which varies foreach transactional use of the credit card, is automatically generatedfor later transaction validity verification after a valid PIN is enteredand accepted by the card. While the idea of such an all-encompassingcard advanced at the time was indeed novel in its capability ofeliminating unauthorized or fraudulent use by individuals other than thecardholder, it suffers from a number of drawbacks judging from today'stechnological and utilization viewpoints. First of all, this card is toocomplex to use and too expensive to manufacture in view of number ofcomponents that need to be incorporated onto the card. Second, themicroprocessor used was not a modern-day smart chip with the level ofsecurity absolutely required by all today's card-issuing banks. Finally,the card system is incompatible with existing magnetic stripe financialcard transaction infrastructure and merchants who opt to use such asystem must invest in new and expensive equipment in order to reap thesystem benefits. Consequently, such a credit card system has notachieved a widespread level of acceptance and usage by the generalpublic.

[0012] U.S. Pat. No. 4,701,601 issued to Francini et al. in 1987discloses a new and improved transaction card having a magnetic stripeemulator which can interface with the sensor or reader head of existingtransaction terminals (magnetic card readers). A transducer means isprovided to generate a varying magnetic field that extends beyond thesurface of the transaction card. Such transducer means were claimed tobe either a thin film head or an electromagnetic coil.

[0013] For the thin film head used as the magnetic stripe emulator, nodescription nor explanation was put forth by this patent as to how thisdevice would function as a magnetic stripe emulator, not even in a verysimple language. Instead U.S. Pat. No. 4,437,130 issued to Hennessy in1984 for a device receiving multiple eight-track tape cartridges wascited as an example. But in actuality if a thin film head could somehowbe successfully implemented on the surface of the transaction card, theonly varying magnetic field that could be generated is perpendicular tothe card surface and hence useless in emulating the magnetic fieldtransitions encoded in a magnetic stripe, which is parallel to the cardsurface.

[0014] For an electromagnetic coil claimed to be usable by this patentas a magnetic stripe emulator, no description was put forth as to howthis device would function as such. Consequently no working transactioncards advanced by this patent have ever surfaced because the claims ofthis patent have never been satisfactorily supported by the disclosureof a viable or demonstrable embodiment.

[0015] U.S. Pat. No. 4,786,791 issued to Hodama in 1988 discloses a datacard using a simulator for magnetic stripes in generating a data signal.The data signal is generated by the use of a magnetic coil having adrive signal provided to it by a circuit on the card which simulates themagnetic flux reversals of the magnetic stripes. This is a veryimportant prior art invention in that the inventor was the first one torecognize the fact that many different types of cards are in use todayand much equipment is installed for reading the magnetic strips on thecards. Consequently any new card, in order to be practical, shouldmaintain compatibility with the existing magnetic card equipment. As themagnetic stripe simulator, the inventor uses a coil consisting of about80 turns of wire having approximately 0.006″ diameter and wound on ahigh permeability magnetic core material such that both the core and thewindings are embedded in the card. The inventor further uses a circuitmeans for providing a drive signal having logic one and logic zero datavalues to the coil for generating a bit pattern which correctlysimulates the magnetic flux reversals encoded on the magnetic stripeprovided to the magnetic card reader.

[0016] U.S. Pat. No. 4,791,283 issued to Burkhardt in 1988 discloses adevice and method for transferring data from a microprocessor located ina transaction card through a card reader by emulating a prerecordedmagnetic stripe on a conventional transaction card such as a credit ordebit card. Data is sequentially produced by the microprocessor withinthe card and applied to a “magnetic field generator” which producesmagnetic fields that emulate prerecorded data on a conventional stripeof a transaction card. While the “magnetic field generator” of thisinvention does not require any specially designed magnetic card readerfor data transfer, the device itself is extremely complex involvingmultiple integrating circuit processing steps for its fabrication. Theoverall cost for setting up such needed custom tooling and specialprocessing equipment together with the delicate precision processdevelopment itself is staggering. This is probably the reason why such a“magnetic field generator” has never surfaced for use in the financialcard transaction arena since its inception over 13 years ago.

[0017] U.S. Pat. No. 4,868,376 issued to Lessin et al. in 1989 disclosesa general-purpose re-programmable intelligent transaction card. The cardincludes an alphanumeric keypad, an alphanumeric display and one or moreinput/output ports controlled by a microprocessor and programs stored ina memory associated with the microprocessor. The microprocessor isprovided with an operating system and may be programmed or re-programmedfor a specific application for a variety of applications. While the cardcan serve multiple functions, it suffers from several drawbacks thatprevent it from being widely accepted by the bank community and thegeneral public. These include its complexity in use, its innateincompatibility with the existing credit card transaction infrastructureand the resultant high cost of the card itself.

[0018] U.S. Pat. No. 5,130,519 issued to Bush et al. in 1992 discloses aportable Personal Identification Number (PIN) card which allows a userto enter a PIN code at a location remote from an authorization terminal.The PIN number is entered into volatile RAM and will remain active forsome finite period of time. The PIN, along with a random number inputfrom a remote computer is processed through a code matrix containedwithin the card to generate an image of the PIN (CGPIN), which can becompared at either the authorization terminal or at a remote computer.

[0019] A German publication No. 42 02 998 (1993) discloses a plastic‘smart’ card which has a built-in coil located on the card in theposition occupied by a magnetic strip on ordinary cards. The datacontained in the memory of the smart card may be read using an inductivecoupling between the coil and the head. The supply to the coil isprovided by the electronic circuit chip of the smart card. The timing ofthe signals corresponds to that of a magnetic strip. No details were putforth as to what kind of a coil it is, whether it has a magnetic core,if so, what are the characteristics of it. Also there is no disclosureas to how this coil can inductively output the data stored in the memoryof the smart chip or what kind of circuitry will be needed to achievesuch a function. In any event, the essential teaching of this disclosurehad been advanced earlier in U.S. Pat. No. 4,768,791 issued to Hodama in1988.

[0020] U.S. Pat. No. 5,317,636 issued to Vizcaino in 1994 discloses amethod and apparatus for secure credit card transactions. This inventiondescribes a system apparatus used to authorize credit card transactions.This apparatus is made up of an authorization computer and a credit cardthat work in conjunction with each other to enhance the security ofcredit card transactions. More specifically, the system includes a smartcredit card that has a microprocessor, associated memories and a liquidcrystal display. The credit card is used to produce a uniqueverification number by processing a transaction sequence number with anencryption algorithm. The verification number is then displayed in thedisplay device, and can be transmitted to the authorization computeralong with a customer identifying account number. The computer, which isused for authorizing the credit card transactions for the customers ofthe credit card issuer, uses the account number to access an accountfile for the credit cardholder. That account file has the generalaccount data for the given customer, as well as a transaction sequencenumber, which corresponds to the transaction sequence number stored inthe credit card. Additionally, the account file contains a de-encryptionalgorithm, which is complementary to the encryption algorithm of thecredit card, such that the computer can use the de-encryption algorithmtogether with the verification number to produce a computed transactionsequence number.

[0021] The computed transaction sequence number is compared with thatstored in the computer to determine whether the two numbers correspondto one another. If they do, then the computer will authorize thetransaction, and if they do not, then the transaction will be rejected.

[0022] Both transaction sequence numbers, the one in the card and theone in the computer, are changed by increment after the authorizedtransaction so that a different verification number is generated andused in the authorization in each subsequent credit card transaction. Inother words, the verification number used in one particular transactionwill not be useful again in a subsequent transaction.

[0023] This invention advances a viable methodology for preventingunauthorized usage for credit card transactions. However, such amethodology has several drawbacks. One drawback is that crucialinformation pertaining to the cardholder and the encryption algorithmare not stored in the memory of a secure microprocessor like themodern-day smart chip and consequently they are vulnerable to electronicpiracy. Another drawback is that since the credit card number and theverification number generated for each transaction are both visibly madeavailable to the merchant so that they can be sent for authorization,once the content of the card is illegally obtained, it would bedifficult to safeguard against subsequent large scale fraud. Yet anotherdrawback is the fact that transmittal of the encrypted verificationnumber, which is an alphanumeric number comprising 14 or morecharacters, rather than the common 4-decimal-digit PIN, along with theuser identifying credit card number, is not compatible with existingcredit card transaction infrastructure. This represent a major roadblockfor such system methodology to be widely accepted by the financialcommunity.

[0024] U.S. Pat. No. 5,434,398 issued to Goldberg in 1995 discloses a“magnetic smart card” which takes advantage of the secure microprocessorof the smart card and also renders it compatible with the existingmagnetic card readers. Two specific embodiments of this invention wereadvanced. The first one is a standalone magnetic smart card comprising acard base, a power source, a secure microprocessor which generates amodulated output corresponding to pre-selected card information, aferromagnetic element embedded in the card base and arranged such that aportion of the element is positioned at a location suitable forinterfacing with a magnetic card reader, and an inductor operative toinduce in the ferromagnetic element a modulated magnetic fieldcorresponding to the modulated output generated by the embeddedmicroprocessor.

[0025] The second embodiment of Goldberg's invention provides aportable, smart magnetic interface device for use with at least onemagnetic card having a magnetic strip. This device is equipped with ahousing, a power source, a secure microprocessor which generates anoutput corresponding to pre-selected card information, a slot associatedwith the housing suitable for accommodating the magnetic card, and amagnetic head associated with the slot and arranged to operativelyengage the magnetic strip when the magnetic card is inserted into theslot for inputting or erasing information from the said magnetic strip.

[0026] Although inventor Goldberg (U.S. Pat. No. 5,434,398) clearly hadthe right idea, like inventor Hodama (U.S. Pat. No. 4,786,791) in takingadvantage of the secure smart chip to combat frauds and identity theftswhile maintaining the usage of the existing magnetic card transactionand processing infrastructure for cost and merchant acceptanceconsiderations, the teachings of this patent have several shortcomings.First, let us consider the patent's first embodiment. In the arena offinancial cards, unit card cost to the issuers is exceedingly importantand this invention's “magnetic smart card” is expensive. Second, unlikeHodama's teaching in U.S. Pat. No. 4,786,791 (1988) on how the simulatorfor the magnetic stripe should work and be implemented, inventorGoldberg's explanation in how his “inductor” operates is unclear andimprecise. Finally, even though this is a “magnetic smart card”, apartfrom the fact that it works with a conventional magnetic card reader, itdoes not work with a smart card reader. As for the second embodiment putforth by the inventor, there is no perceived advantage over the firstembodiment. The portable, smart, magnetic interface device is equallycostly if not more so than the standalone “magnetic smart card”.

[0027] U.S. Pat. No. 5,789,732 issued to McMahon et al. in 1998discloses a consumer data device of a plastic encased, credit-card sizedcase containing a memory for data and transaction retention, an LCDdisplay for displaying information, an LCD display for bar-codes to beread by a bar-code scanner, a controller to scroll through storedinformation, and a data communication link via spread-spectrum RF ordirect electrical contact to a host computer. Although many of theelements advanced by this invention have potentials for exploitation inthe design and implementation for future financial cards, this prior artis not as useful as others and its inclusion is primarily for the sakeof completeness only.

[0028] U.S. Pat. No. 5,955,961 issued to Wallerstein in 1999 discloses aprogrammable transaction card which enables accessing a selected one ofa plurality of different accounts with the same or different financialinstitutions through communication with an authorization center whileproviding important anti-fraud features. The transaction card includes akeypad for selecting a desired account and for entering optionalidentification information for the card. The transaction card generatesan account number corresponding to the selected account. The accountnumber, together with the identification information, if entered, ispresented in a form that is readable by a reader device but is notdiscernable by the human eye, e.g. by emulation of a magnetic strip oran optical pattern. After a reader device (magnetic or optical reader)reads the account number and the identification information during atransaction, the account number and the identification information aretransmitted to the authorization center for verification and access tothe selected account.

[0029] In order for this transaction card to perform all theabove-mentioned chores, it has to pack away so many features and devicesin the card that it becomes overly cumbersome and complicated to use foran average consumer. For example, the incorporation of the feature ofbeing able to select from a plurality of different accounts necessitatesthe use of an awkward thumb-wheel switch on the card, which is veryuser-unfriendly. The same applies to the situation when tonalidentifying controls are added to the card, which will certainly makethe latter even more complicated to use. But the most significantdisadvantage of this invention is the high cost for producing the cardwhich is the most critical and sensitive criteria for card issuers toconsider before adopting the use of any card for their customers.

[0030] On the technical side, the inventor of U.S. Pat. No. 5,585,787did not disclose the details how he envisions the use of an inductorcoil for generating a time-varying magnetic field that appears to thecard reader as if a conventional magnetically encoded card had been“swiped” through the reader head Instead he cited the embodiment of ananalog drive circuitry described in U.S. Pat. No. 4,868,376 issued toLessen et al. in 1989 as an example of accomplishing such a feat.However, no details were expounded in the cited U.S. Pat. No. 4,868,376as to the exact nature of the coil, its magnetic properties such as itscore composition and permeability, number of winding turns per inch,length of the winding coil etc. Furthermore no mention was made toHodama's magnetic stripe simulator (U.S. Pat. No. 4,868,376) which isclearly an important prior art.

[0031] U.S. Pat. No. 6,089,451 issued to Krause in 2000 discloses atransaction card system for authenticating the use of transaction cardshaving a magnetic stripe. The system involves the use of a cardpossessing a non-standard magnetic stripe. Specifically the magneticstripe disclosed has a coercivity approximately an order of magnitudelower than the 300 oersteds value for a standard low coercivity magneticstripe card. The card receives input from a user and determines if theinput is valid. If the user's input is valid, the card responds byenabling said non-standard magnetic stripe thereon. The magnetic stripeis enabled for a limited time after which it is disabled. In thispatent, the inventor discloses a transducer which can convert electricalenergy supplied by the energy source into magnetic energy which canwrite data to the magnetic stripe in a predetermined format. By passingjust a single current through a “circuit of wire”, magnetic fields canbe produced in designated locations along the magnetic stripe so as tosimulate digital data encoded on same.

[0032] There are two basic drawbacks in the above disclosed embodiment.First, in order to generate strong enough magnetic fields to “encode”digital data onto the magnetic stripe using just a single continuouswire forming a “circuit” or desired spatial pattern, a large current,typically several amperes, has to be deployed. Thus from theconsideration that only a limited capacity energy source is availableonboard the card, the standard low coercivity magnetic stripe (300oersteds) is too high for use as the magnetic storage medium for thisdisclosed embodiment. Instead, a much lower coercivity magnetic stripehaving an “ideal” coercivity of only 30 oersteds must be used. The useof such a low coercivity magnetic stripe cannot guarantee the integrityof the dynamically encoded digital data for card transaction purposes,even though it may only take a few minutes in most cases to complete atransaction. Second, the transducer disclosed can only “encode” oneparticular digital data package (equivalent to one credit card's worth)onto the non-standard magnetic stripe because the so-called “wirecircuit” or the spatial pattern of the wire is fixed and is thereforeinvariant. No details were put forth in the disclosure as to how torender this transducer capable of “encoding” different digital datapackages at different times on demand onto the non-standard magneticstripe. The only skeletal teaching was afforded as “coils of wires,multiple current carrying conductors together, printed circuits, etc.all may serve to task without deviating from the objective which is toconvert electrical energy into magnetic energy in a spatiallydistributed manner.”

[0033] U.S. Pat. No. 6,095,416 issued to Grant et al. in 2000 disclosesan authorized card, such as a credit card, having a security feature.The authorization card generally has two operational states, a disabledstate and an enabled state. In the disabled state, which is the defaultmode of operation, access to confidential information stored on the cardis denied. The card remains in the disabled state until a PIN code isentered on a keypad provided on the card. Once the card is enabled,access to the confidential information is permitted for a predeterminedperiod of time, after which the card reverts back to the defaultdisabled state. Such a security feature could be implemented on amagnetic card, an electronic smart card, and passive electronic card.

[0034] U.S. Pat. No. 6,188,309 B1 issued to Levine in 2001 discloses anintelligent credit card which includes a keypad for inputting numbersand other information, a processor for controlling the operation of thecredit card, a power source, and an output device for selectivelyoutputting the credit card number when the card is activated. The outputdevice is a magnetic strip. A user inputs a sequence of numbers usingthe keypad. The received sequence of numbers are compared to a storedPIN number if the sequence of numbers matches the PIN number, the cardis activated, and the credit card number is outputted using the outputdevice.

[0035] U.S. Pat. No. 6,206,293 B1 issued to Gutman et al. in 2001discloses a magnetically communicative card having a ferrite coreextending substantially the width of the card body and has a conductorwound around the ferrite core for the entire length of the ferrite core.Embedded within the card body is a controller that controls a varyingmagnetic field emanating from the conductor to mimic a varying magneticfield produced by a conventional magnetic stripe card. Optionally, thecard includes a sensor to sense a signal intercepted by the conductorfrom a varying magnetic field emanating from another device. Thecontroller reads the sensed signal to receive communication from theother device.

[0036] U.S. Pat. No. 6,223,984 B1 issued to Renner et al. in 2001discloses an intelligent card reader to replace existing magnetic stripereaders, bar code readers, and Wiegand effect readers without the needfor expensive retrofitting of existing computer systems which arecoupled to the existing readers. The intelligent card reader can replacethe aforementioned readers and yet remain compatible with their existinginterfaces by emulating a magnetic card reader, a Wiegand effect reader,or a bar code reader.

[0037] U.S. Pat. No. 6,257,486 B1 issued to Teicher et al. in 2001discloses a smart card, smart card reader, and system for secure entryof a secret personal identification number (PIN) directly into the smartcard while the card is presented to the reader. Because the user's PINis entered directly into the smart card itself, and not propagatedoutside the smart card, the PIN cannot be covertly obtained through theuse of a compromised reader or other device in the system. A PIN keypadon the smart card allows user entry of the PIN, and an authenticationunit within the smart card verifies that the PIN is correct. The readermerely supplies electrical power for the smart card to take the PINentry and perform the authentication, but does not handle the PIN itselfin any way. The reader, however, is designed to allow access to thekeypad on the smart card while the smart card is being presented. Thereader may also have a separate keypad of its own for use withconventional smart cards that lack a keypad.

[0038] Examples of Group II prior art inventions relating to advancementof new methodologies in the processing and transaction systems forfinancial cards are disclosed in the following patents: U.S. Pat. No.Inventor Date 4,650,978 Hudson et al. Mar. 17, 1987 5,627,355 Rahman etal. May 6, 1997 5,754,652 Wilfong May 19, 1998 5,844,497 Gray Dec. 1,1998 5,917,168 Nakamura Jun. 29, 1999 6,075,861 Miller II Jun. 13, 2000

[0039] U.S. Pat. No. 4,650,978 issued to Hudson et al. in 1987 disclosesa rather complicated “bank” cash card system for handling fund transfertransactions between a payor and a payee having a magnetic “hysteresis”security arrangement. A cash card has a magnetic stripe on which theavailable cash balance, the identification and security information arescramble-recorded. A transaction register machine reads data form thecard, carries out the transaction and records the new account balance onthe card. The modified information is restored on the card in the formof a re-scrambled code. The transaction register machine also includes amagnetic tape of the cassette type or disk for storing each transactionthereon for further processing of the information at a remote dataprocessing center. The transaction register machine further includes amain keyboard on the side of the payee for displaying the cash balanceon the card. The main keyboard is responsive to the to the cardholder'skeyboard which has a slot for insertion of the card for verification byentering the correct identification number known only to the cardholder.Again, the complexity of such a system, together with its inherentincompatibility with the existing magnetic credit card transactioninfrastructure, has proved to be too much of a barrier for the system tobe widely accepted and implemented by the financial community.

[0040] U.S. Pat. No. 5,627,355 issued to Rahman et al. in 1997 disclosesa security equipment protecting the relaying of account numbers andpersonal identification numbers (PINs) by telephonic or othercommunication link. This equipment includes a host computer and a remoteportable transaction device that interact with one another. A creditgranting institution generates an account number and a series of uniquepersonal identification numbers for each account number. Thisinformation is stored in the host computer's memory and is assigned as areference series to an individual customer account number. An identicalseries of numbers in the same sequence is stored in the memory of theremote device. In operation, the customer account on the host computeris activated and the host computer's memory is indexed sequentially tothe first number in the reference series. During use of the remotedevice, a unique personal identification number is added to the customeraccount number and transmitted to the host computer. There it iscompared to the account number and personal identification number in thereference series. The computer will authorize the transaction if thenumber in the stored series is identical to the number in the referenceseries; otherwise the transaction will be denied or questioned.

[0041] The method advanced in U.S. Pat. No. 5,627,355 for preventingtheft of credit information, in particular the personal identificationnumbers (PINs), has a number of operational disadvantages. In thispatent's teaching, the credit card number is always visible for use byanybody getting hold of the card. This number, along with a special PINvisibly generated on command on the card which varies sequentially insynchronism with the issuer from transaction to transaction, must bepassed on to the credit granting institution for authorizing thetransaction. Even though the PIN is unique for each transaction, thereis nothing to prevent anyone in possession of a stolen card fromsequentially generating the right combination of the PIN and accountnumber, even though it might take some time to successfully carry out anunauthorized transaction.

[0042] Furthermore, it is operationally questionable whether or not themethod taught in U.S. Pat. No. 5,627,355 is actually scaleable. Becausethe host computer has to store so many PIN numbers (literally hundredsfor each customer alone that has multiple credit cards form differentissuers), access time and memory capacity of the host computer maybecome critical parameters in terms of whether the processing systemwill function smoothly as the number of cardholders continues to grow.The same problem might surface when occasional but unavoidable systemglitches take place due simply to too much load or demand for cardapproval or reconciliation.

[0043] U.S. Pat. No. 5,754,652 issued to Wilfong in 1998 discloses amethod for sequentially encrypting the digits of a personalidentification number, and an apparatus for practicing the method.According to the method, a random number is generated and supplied to auser requesting access to a system. The user encrypts a digit of hispersonal identification number by performing a function on the randomnumber and the digit and then provides the encrypted digit to averification system. A second random number is then generated, providedto the user, applied to encrypt another digit of the user's personalidentification number and then input to the verification system. Thedialogue between verification system and the user continues, digit bydigit, until each digit of the personal identification number has beenprovided to the verification system in encrypted form. The verificationsystem then compares the encrypted input with the user's personalidentification number accessed from memory.

[0044] U.S. Pat. No. 5,844,497 issued to Gray in 1998 discloses a methodand apparatus for controlling access to at least one program on acomputer by verifying data entered through a keyboard with data storedon a token such as a card, while isolating the entered data from thecomputer. The apparatus includes a verification device, external to thecomputer, which receives the entered data and compared it with datastored on the card. The verification unit then generates a status signalindicative of the result of the comparison, the verification device isoperable in a first mode wherein data provided to the verification unitvia the keyboard is not provided to the computer. The verificationdevice is also operable in a second mode, wherein at least one programon the computer is accessible via the keyboard when the data from thekeyboard matches the data from the card. When operating in a third mode,communications are restricted to that between the verification deviceand the computer. The verification device operates in one of the threemodes in accordance with commands from the computer.

[0045] U.S. Pat. No. 5,917,168 issued to Nakamura et al. discloses aterminal for carrying out at a private location a transaction consistingof alteration of a token value stored in an IC card issued to acardholder via an on-line transaction session with an operativelycompatible terminal at a remote location. The private terminalestablishes data links with the IC card and the remote terminal andpasses secure authentication and transaction messages between them viathese data links, relying on the IC card and the remote terminal formessage security.

[0046] U.S. Pat. No. 6,075,861 issued to Miller II in 2000 discloses anentry access system includes a locking mechanism enabling authorizedentry at a secured entry point to a closed access area or computingdevice. Entry is approved in response to an interaction between anintended entrant and the entry access system that involves aninterchange of multi-digit numbers and use of ID and PINs for generationof a multi-digit check number to establish authenticity of a request forentry.

[0047] Examples of Group III prior art inventions relating to theadvancements of card systems hardware encompassing new technologies inelectronic components, devices and subsystems are disclosed in thefollowing patents: U.S. Pat. No. Inventor Date 4,742,351 Suzuki May 3,1988 4,849,613 Eisele Jul. 18, 1989 5,770,849 Novis Jun. 23, 19985,818,030 Reyes Oct. 6, 1998 6,010,066 Itou et al. Jan. 4, 2000 6,012636Smith Jan. 11, 2000

[0048] U.S. Pat. No. 4,742,351 issued to Suzuki in 1988 discloses an IC(integrated circuit) card system of the type in which IC cards areidentified when they are connected to an external device such as aterminal. When an IC card is inserted into an IC card terminal, the PAN(primary account number) data read out from the IC card is compared withthe decrypted PAN data for identification purposes. Then, the IC card isremoved from the terminal. The PIN data input to the IC card is comparedwith the PIN data pre-stored in the IC card, the results of thecomparison are used to identify the validity of the IC card, theterminal, and the card owner.

[0049] U.S. Pat. No. 4,849,613 issued to Eisele in 1989 discloses amethodology and equipment of an operating procedure and to a device formaking an electronically authorized determination of a matter as well asto a computer device for implementing the operating procedure. Theobjective is the electronically authorized determination of anindividual matter and the remotely authorized individual differentiationof a transaction authentication requiring on the part of the authorizedperson. With the exception of the authentication concept, this prior arthas very little to do with the operation and processing of financialcards and is included here for the purpose of completeness.

[0050] U.S. Pat. No. 5,770,849 issued to Novis et al. in 1998 disclosesa smart card device including a portable housing with a viewing apertureand a visual image display positioned to provide an image at theaperture of information contained on a smart card as well astransactions processed in response to data transmitted by a transceiverbetween a host database and the smart card device. The primary purposeof this invention is to provide new and improved apparatus for viewingand utilizing information stored on a smart card. This prior art is alsoincluded in the current disclosure for the sake of completeness.

[0051] U.S. Pat. No. 5,818,030 issued to Reyes in 1998 discloses asecure, smart credit card having the same basic dimensions of a standardcredit card. This invention provides a security system that uses theconcept of a key, which, when removed prevents unauthorized use of thecard. The so-called dual device system has tow parts. A first part is amicro-programmable central unit (CPU) in the main body. The second partis an engageable intelligent micro-memory module that functions as a keyunit and is configured to join the main body to form an engaged unithaving the general dimensions and appearance of a “smart credit-typecard.” The CPU of the main body and instructions are designed to operatein conjunction with the external intelligent micro-memory module or keyunit. The key unit stores the programs and date required by theprocessor CPU in the main body to allow the user to operate the creditcard system. Although such a credit card system has the ability to helpprevent unauthorized or fraudulent use, it is unlikely that this systemwill be widely accepted in the financial community because of itsoperational complexity from the user's standpoint, and its questionablecompatibility with the prevalent credit card transaction processinginfrastructure.

[0052] U.S. Pat. No. 6,010,066 issued to Itou et al. in 2000 discloses aportable terminal device in which electronic money IC (integratedcircuit) cards storing electronic monetary information are inserted, andwith which the electronic monetary information can be read out and/orwritten into the cards. One of the primary objects is to provide aportable terminal device for electronic money IC cards, hithertounavailable, into which at least two electronic money IC cards can beinserted and with which monetary data of them can be transferred toand/or exchanged with each other.

[0053] U.S. Pat. No. 6,012,636 issued to Smith in 2000 discloses amultiple application card data system comprising a data managementdevice and a user card (a dual component system). This credit cardsystem is, by design, complicated. A user can carry a single card thatmay be modified at will to be, in effect, a clone for any one of theuser's provider data cards, through the use of a companion datamanagement device that can store data from a plurality of provider datacards. However, the system requires a user's interaction in order totransfer data from the data management device to the user card. Inaddition, the data management device also stores a digital datarepresentation of the user's fingerprint for verifying the user'sidentity when compared with an actual scanning of the user's fingerprintimage by the same device during the process of authentication. Thus, theuser's identification verification is by no means a simple procedure.Furthermore, the user card itself comprises two memories for storingdata, the first memory stores data issued by a service provider and thesecond memory stores a set of data unique to the user. Before the user'sscanned fingerprint image can be used for identification purposes, thedata management device must first verify the data contents of the twomemories resident on the user card without even raising the issue of thequestionable public acceptance today with regards to using fingerprintimaging as a form of personal identity, the procedures the card usermust endure in order to safeguard the card's security againstunauthorized use are far too complicated. It is believed, as advanced inthe current invention below, a much simpler and much less costly cardsystem that will work just as well against unauthorized fraudulent useidentity thefts of financial cards.

[0054] In examining and analyzing the exhaustive prior art presentedabove in finance cards, their transaction and processing methodologiesand new equipment and subsystems, it counters one's intuition and logicto observe that each of the prior art inventions to date addresses theoverall card security problem mostly from a very narrow point of view.Not one single prior art patent tackles the problem of today's creditcard frauds and identity thefts (at least for magnetic cards) using atotal picture approach that takes into considerations the real issuesand needs for the solution of this problem. Very simply, one candescribe the current total picture as follows. Credit card frauds andidentity thefts are still rampant today in the United States with nosign of abatement. One solution clearly has stood out for adoption overthe past several years and that is the use of smart cards in lieu of themagnetic cards. However, due to the colossal cost of replacing existingmagnetic card readers and the needed retraining of workers from thestandpoint of the merchants, and the proven slow acceptance of newmonetary device and equipment by the conservative American public (e.g.the ATM cards), the smart card solution to date has simply not beenworking. It is amply clear that a new and novel device and methodologyis urgently needed that can serve as a “bridge” to link the world of themagnetic cards to that of the smart cards. However, such a device andmethodology must afford very low unit cost cards and very low unit costaccessories (if needed). Furthermore, this novel device and method mustpossess a very high efficacy of eliminating finance card frauds andidentity thefts. They must be very simple and easy to use without anyappreciable resistance from both the merchants and the consumers.Finally, this novel device and methodology must be technically sound andhave no measurable risk in both its implementation and fast-trackadoption by the general public. The current invention in the MagneticStripe Bridge (MSB) is just one such device and methodology.

OBJECTS AND SUMMARY OF THE INVENTION

[0055] It is therefore a primary object of the present invention toprovide improved methods and systems for linking the attributes of smartcards to those of the existing magnetic stripe card infrastructures.

[0056] A further object of the present invention is to provide a uniquebridge device to accomplish the functional linking of ‘naked’ smartcards to the magnetic stripe (or strip) card infrastructure to provideadditional levels of security to the linking process by virtue of atransaction number generator carried within the smart card.

[0057] The objective of the present invention is to take advantage ofthe secured characteristics of smart cards to devise a methodology withassociated hardware that would eliminate magnetic card frauds andidentity thefts. More precisely, such a scheme acts in effect like a“bridge” that would link the world of the vulnerable magnetic financialcards with that of the secured smart cards. With the use such a“bridge”, one can take advantage of the secured attributes of the smartfinancial cards while still be able to use the existing magneticfinancial card transaction and processing infrastructure to eliminatethe need for expensive reader replacement, personnel retraining and mostof all, to be accepted by the conservative American public with minimumresistance.

[0058] Another objective of the present invention is to extend the usageof this “bridge” whereby other extremely sensitive and vital personalinformation such as one's medical records, names of one's physicians andnames of relatives to notify in case of emergencies, insurance policynumber etc. can be securely stored in the smart chip of the samefinancial card. This private and vital information could be madeavailable to relevant authorized individuals such as ambulance operatorsor emergency care center personnel. If the ambulances and emergency carecenters are equipped with relatively inexpensive magnetic card readersthat can read vital data from track 3 of the magnetic strip, and by apriori arrangement they have access to one's medical PIN number fortrack 3, then in the case of an emergency, one's vital medical recordscan be made readily available for use by the healthcare personnel. Incertain circumstances that could mean the difference between life anddeath for an individual.

[0059] The present invention has to do with a novel “bridge” device andmethodology that couple or link the world of the smart cards to that ofthe magnetic credit cards as discussed earlier above. As its nameimplies, this device is called the “Magnetic Stripe Bridge” or MSB Themain function of the MSB is to interface the smart card afterauthentication by same to a magnetic card reader for credit transactionand processing. As such any smart card is effectively transformed viathe use of the MSB instantly into an ordinary magnetic credit card andadmissible for use by any existing magnetic card reader.

[0060] The Magnetic Stripe Bridge is arranged as a plastic encased,credit-card sized case. It houses an electrical power source, amicroprocessor, a ten or more digits alphanumeric LCD display, a16-characters keypad, a contact pad for electrical interfacing with thesmart card upon proper registration and a magnetic stripe simulator inthe form of a flat multi-turn wire-wound coil with a similarly-shapedhigh permeability magnetic core. A card slot is located on the top righthand side of the housing for accommodating the horizontal insertion(from right to left) of a smart card. In a preferred embodiment of thepresent invention, the bottom one-third of the housing (˜1.00″) is athin section with a thickness roughly the same as a conventionalmagnetic credit card or 0.033″. The magnetic stripe simulator iscentrally embedded in this thin section and approximately 0.40″ from thebottom edge. This thin section arrangement for the case allows the MSB(with or without the inserted smart card into its side) to be centrallyinserted from the top into any magnetic card reader with the magneticstripe simulator properly engaging the reader head.

[0061] Consider now briefly the overall operation of the MSB intotransforming a regular smart card instantly into a card (magnetic) thatis admissible for transaction and processing by a conventional magneticcard reader. A smart card is first inserted into the MSB through a cardslot located on the right hand side of the case housing. A properinsertion will activate via a contact switch or software provision themicroprocessor-controlled circuit inside the MSB while at the same timebring the smart card contact pad into registration with thecorresponding springy contact pad inside the MSB and thereby powering upthe smart chip of the smart card via the MSB battery.

[0062] The microprocessor inside the MSB (hereby referred to as theMMSB) initiates an ATR communication with the smart chip according tothe standard ISO 7816 protocol. After the communication is properlyestablished, the MMSB effects a ““ENTER PIN”” message on the LCD of theMSB. The smart card cardholder is requested to enter his or her 4- or6-digit PIN number using the keypad on the MSB. The MMSB thencommunicates this information to the smart chip for verification. Afterthe smart chip verifies this PIN number to be valid, it sends over tothe MMSB all the magnetic stripe track 2 data information plus a 3-digittransaction number. After that the smart card has nothing more to do andcan be pulled out of the MSB card slot for safekeeping.

[0063] Upon correctly receiving and storing all the transaction datainformation from the smart chip, the MMSB effects another message “OK 4READER” on the LCD. At this point the MSB takes over the role as the“magnetic-card-reader-admissible smart card”. The merchant or salesclerk can now treat the MSB as if it is a valid magnetic credit cardtransformed from the smart card. In one preferred embodiment of the MSB,the merchant can simply swipe the thin section of the MSB through themagnetic card reader and the transaction will be put through to theexisting magnetic card processing infrastructure for any conventionalmagnetic credit card. In another preferred embodiment of the MSB, themerchant can simply place the thin section of the MSB into the slot ofthe magnetic card reader from the top and approximately centers it inthe middle of the reader where the reader head resides. He then pushesone of the designated keys on the keypad of the MSB to begin thetransaction.

[0064] In either of the two preferred embodiments of the MSB describedabove, the merchant can “swipe” or “center and push button” the MSBseveral times just like he is handling an ordinary magnetic credit card.

[0065] In the event that the smart card cardholder's PIN number is notvalid, the smart chip automatically keeps account of how manyconsecutive times an invalid PIN number is being tendered. Every timethe smart chip rejects a tendered PIN to be invalid, that information isrelayed back to the MMSB. At which point the MMSB will effect a “TRYAGAIN” message on the LCD display. After three, illustratively,consecutive times of an invalid PIN number being tendered to the smartchip for verification, the smart chip will no longer verify anyadditional PIN numbers and it will take itself out of the service.Meanwhile the MMSB will effect a “INVALID PIN” on the LCD display andshuts itself down and leaves the LCD display blank. However, tore-activate the MSB after its shutdown, one simply has to pull out thesmart card (if it is still engaged with the MSB) and re-insert it toresume operation. If the smart card has already been pulled out of theMSB, one simply re-inserts the smart card again to achieve the sameresult.

[0066] One of the greatest advantage of the current invention of theMagnetic Stripe Bridge (MSB) and its methodology is the fact that itleaves both the old magnetic card world and the new smart card worldvirtually undisturbed. The present invention merely serves as the vital“bridge” that links these two worlds together in order to achieve theheretofore almost impossible task of convincing the cost-consciousmerchants and the conservative American consumers to buy in on thesecure smart card technology in a much shorter time frame. It isimportant to point out that the cardholders themselves do not have tocarry the MSB with them. Rather, it is only the merchants, if they careto do new smart card business, that need to have the MSB ready for thenew smart cards using their old magnetic card readers.

[0067] Even more importantly, the present invention is one that iseasily affordable by both the card-issuing banks and the merchants.First of all, the burden of the meager cost for the MSB (only a few USdollars when manufactured in millions quantity) is not borne by theissuing banks nor by the cardholders. When the issuing banks decide toissue smart cards in lieu of the traditional magnetic cards, theincremental cost is relatively small, estimated to be less than US$ 0.50per card. However, by issuing these secure smart cards, the issuingbanks stand to reap huge financial benefits in fraud reduction and inthe scaling down of personnel counts needed to service the growing fraudcomplaints from customers and merchants alike.

[0068] For the cardholders, if there is no fee increase or othercharges, there is an excellent chance that they will buy in on the newsmart cards just because they no longer have to worry about losing theircards that could lead to frauds and identity thefts, not to mention themany new smart card features, e.g. the storage of their own vitalpersonal medical record on the same smart card, that they now can enjoyand take advantage of.

[0069] From the merchants' standpoint, it is for them really a matter ofpracticing good business. For the investment they have to put up (inmost cases a handful of MSB's at a few dollars each), not only will theynot lose new smart card business, they also are in line to reap thefinancial benefits and time savings with the issuing banks because ofthe overall fraud reduction of credit cards.

[0070] We have mentioned earlier that the present invention literallywill leave both the magnetic card world and the smart card worldundisturbed. It is relatively easy to have a smart card mimic aconventional magnetic card. All one has to do is to have the track 1 andtrack 2 data for a card belonging to a particular cardholder stored inthe EEPROM (Electrically Erasable Programmable Read Only Memory) of thesmart chip. We mentioned earlier that after the smart chip verifies thePIN of the cardholder to be valid, it sends the track 2 data over to themicroprocessor of the MSB (MMSB) to be transmitted subsequently to themagnetic card reader for transaction processing. In addition it alsosends over a 3-digit transaction number which is automatically updatedby the smart chip every time it verifies a valid PIN number and sendsover the track 2 data belonging to the cardholder. Thus the track 2 dataprocessed for every valid transaction for the card is actually dynamic.In other words the valid credit card number of the cardholder is alwaysaccompanied by a variable 3-digit transaction code. Only the issuingbank would know the algorithm governing the updating of this transactionnumber every time the cardholder legitimately uses the card. Therefore,even though the cardholder's name and valid credit card number can beembossed on the smart card like any conventional magnetic credit card,skimming of this information from the card is insufficient to commit afraud against the cardholder because of this dynamic 3-digit transactionnumber. What we have shown here is just one embodiment example in themethodology of the present invention. Other anti-fraud schemes can beimplemented and used in coordination with the smart chip including thosecurrently used by most issuing banks.

[0071] Another equally important advantage afforded by the presentinvention is the very low technological risk associated with therealization of the MSB. Unlike many prior art inventions listed anddiscussed above that require implementing more and more components andfeatures onto the card (magnetic or smart types alike), both thetechnological complexity and their unit production cost willcorrespondingly and significantly rise. But even more worrisome is thereliability issues for these cards and their ability to meet thestringent ISO compliance standards, both in whether they will be able toactually meet such standards and how long it will take them to do so.For the present invention, we are dealing only with the so-called“naked” smart cards, i.e. cards that have only the smart chip on themand nothing else. These “naked” smart cards have been reliablymanufactured in millions during the past 2 decades. They all have noproblems to date meeting the stringent ISO compliance standards forsmart cards.

[0072] As far as the MSB itself is concerned, with the exception of themagnetic stripe simulator, which has excellent demonstrable prior art,most notably U.S. Pat. No. 4,786,791 (1988) issued to Hodama, the othercomponents are routine and the complexity of the MSB unit less thesimulator likens to nothing more than just a credit-card sizedcalculator which has been produced in the millions with extreme costeffectiveness since the 1960's. Furthermore Hodama's “magnetic stripesimulator” prior art invention has been greatly improved in efficacy andreliability by the present inventor. The prior art analog circuit fordriving the coil has been replaced with a microprocessor for achievingmore precise and more energy-efficient driving. The coil itself is nowwound with smaller diameter (0.003″) and much better insulated wire forachieving an even more compact and closer-spaced winding for the coil.As a result of these improvements to the “magnetic stripe simulator”,the MSB of the current invention can be readily produced in very largequantities and at a very low unit production cost.

[0073] Finally, another significant advantage of the present inventionlies in the fact that the MSB and the accompanying methodology not onlylinks the two worlds of finance cards together in forging the smart cardforward, it also allows the usefulness of the magnetic card to expandinto new and much needed areas by exploiting the secure attribute andsuperior capability of the smart chip, and also the popularity, ubiquityand trust by most Americans in the magnetic cards. In essence, the“magnetic stripe simulator” not only can simulate track 2 data buteasily track 1 and track 3 data as well. Unlike the track 2 data whichis only numeric, data format in tracks 1 and 3 are alphanumeric. Thefact that the data density in both tracks 1 and 3 (210 bpi) is almostthree times as dense as track 2 (75 bpi) poses hardly any problem forthe brilliant “magnetic stripe simulator” prior art (U.S. Pat. No.4,786,791 issued to Hodama in 1988) and the improvements subsequentlyadvanced to it over the years (U.S. Pat. No. 5,434,398 to Goldberg in1989, U.S. Pat. No. 5,955,961 to Wallerstein in 1999 and the presentinvention).

[0074] The embodiment of the present invention is not limited to thedeployment of just one “magnetic stripe simulator” to emulate dataencoded in track 2 of the MSB but can be extended to any number from oneto three emulating all three tracks of a magnetic stripe. Since any datastored in the smart chip is secure, one's personal and vital medicalrecords can certainly be safely stored there. These secure data can beoutputted through track 3 of the MSB upon entering a special medical PINnumber for the cardholder. This medical PIN number is accessible only tocertain authorized health professionals such as the ambulance operatorsand the medical staff of emergency care centers equipped with a magnetictrack 3 reader. This is but one example to show how the magnetic cardworld can be expanded for use in other information areas when linked tothe world of the smart cards.

BRIEF DESCRIPTION OF THE DRAWINGS

[0075] These and other objects of the present invention, as well as manyof the intended advantages thereof, will become more readily apparentwhen reference is made to the following description taken in conjunctionwith the accompanying drawings wherein:

[0076]FIGS. 1A, 1B and 1C depict front, back and side elevations,respectively, of a ‘naked’ smart card with only the smart chip embeddedin it;

[0077]FIGS. 2A and 2B depict a ‘Magnetic-Card-Reader-Admissible’ smartcard with no magnetic strip on back of card;

[0078]FIG. 3 shows schematically the physical layout for the MagneticStripe Bridge (MSB) according to the present invention;

[0079]FIG. 4 depicts a highly schematic 3-dimensional exploded compositeview of the (MSB) according to the present invention;

[0080]FIG. 5 shows schematically the circuit layout for the (MSB);

[0081]FIG. 6 is a partially exploded view of an advanced AMSB embodimentof the present invention to aid in readily visualizing its method ofuse;

[0082]FIGS. 7A and 7B show schematic frontal (top) and side views,respectively, of the advanced AMSB embodiment depicting its movable partin a first or normal position for storage, or for usage with aswipe-type reader;

[0083]FIGS. 8A and 8B show schematic frontal and side views,respectively, of the advanced AMSB embodiment depicting its movable partextended to a second or fully extended position for usage with aninsertion-type reader;

[0084]FIG. 9 is a highly schematic 3-dimensional, exploded compositeview of the advanced AMSB according to the present invention;

[0085]FIG. 10 is a highly schematic representation of the circuit layoutof the AMSB partially overlaid with related/contiguous components; and

[0086]FIG. 11 is a flow chart detailing the method sequences implementedin all embodiments of the present invention.

BEST MODE FOR CARRYING OUT THE INVENTION

[0087] The present invention is a novel “bridge” device and methodologythat together couple or link the world of the smart cards to that of themagnetic cards. Within this context, the magnetic cards world usesmagnetic finance and security cards (credit, debit and access) with thecardholder's vital account information such as name, valid accountnumber, expiration date, encrypted PIN etc. permanently encoded on oneor more tracks of the magnetic stripe fabricated on the back of thecard. A magnetic card reader is used to read out the information encodedon one or more tracks of the magnetic stripe for transaction processing.For credit cards, for example, the information needed to process credittransactions for goods or services resides on track 2. On the otherhand, the smart cards world uses the so-called smart cards with a smartIC (integrated circuit) chip embedded in each of them. The most commontype of smart cards is the “naked” kind. A “naked” smart card has onlythe smart IC chip embedded in it and nothing else. In the context of thepresent invention, the smart cards in the smart card world are of the“naked” kind. FIG. 1 depicts schematically a “naked” smart card. Itsphysical dimensions are exactly the same as those for the magnetic card,namely 3.375″ long (1) by 2.125″ wide (w) by 0.033″ thick (t).

[0088] As its name implies, the novel “bridge” device of the presentinvention is called the “Magnetic Stripe Bridge” abbreviated as MSB. Themain function of the MSB is to interface the smart card afterauthentication by same to a magnetic card reader for credit saletransaction using the existing magnetic card processing infrastructure.As such any smart card is effectively transformed via the use of the MSBinto an ordinary magnetic credit card and admissible for use by anyexisting magnetic card reader for a short predetermined time. Hence thepresent invention allows a credit card issuing bank to issue smart cardsin lieu of magnetic credit cards in order to take advantage of the smartcard's superior secure attributes and capabilities. FIGS. 2A and 2Bdepict the front and back sides of a smart card issued by a bank toreplace the magnetic credit card according to the teaching of thepresent invention. Like the old magnetic credit card, the name of thecardholder, the valid account number and the expiration date can all beembossed on the smart card with the usual issuing bank's holographiclogo and the insignia of the credit card organization (VISA(R) orMASTERCARD(R), etc.) printed on the front of the card. Appearing on thesame side as the various embossed characters and at a special designatedlocation is the contact pads CP for the smart chip SC with the latterembedded underneath it. This smart card can also have a signature stripe(see FIG. 2B) on its back side along with additional alphanumeric codenumbers printed on same for added security measures against fraud andidentity theft by the issuing bank.

[0089]FIGS. 3A and 3B show schematically the physical layout for theMSB. The MSB has a bottom casing 10 with a thin section 12 and a thickersection 14. A slot opening 16 is for the insertion of a smart card isfabricated on one side of the bottom casing 10, that is the right handside when the thin section 12 of the casing 10 is oriented downwards asshown in FIG. 3. A two-sided printed circuit board (PCB) 18 is mountedsecurely in the bottom casing 10. A laminated polymer layer 20 with anopening 22 for showing a 10-digit alphanumeric LCD 24 and the layout ofthe 16-key keypad 26 with individual conductive buttons, of which 28 istypical, is placed on top of bottom casing 10 to complete the packagingfor the MSB. An illustrative MSB may have the overall dimensions of 3.5″in height H, 2.5″ in width W, as well as the thicknesses 0.033″ for itsthin section T1 and 0.125″ for its thicker section T2.

[0090]FIG. 4 depicts a 3-dimensional composite view of the MSB. Thebottom casing 10 constitutes the bottom layer with the thin section 12elevated from the thicker section 14. A smart card 30 is shown fullyinserted into the right hand side slot opening 16 with a portion of thesmart card remaining on the outside. The two-sided PCB 18 constitutesthe next layer. On the bottom side of PCB 18 are mounted respectively amagnetic stripe simulator 32 in a carved out trough 34 in the thinsection 12 of the bottom casing 10. A contact switch 36 is also mountedon the bottom side of PCB 18 to wake up the microprocessor MMSB 38 whenthe smart card 30 is fully inserted into the slot 16 of the bottomcasing 10. Finally a smart card flexible contact pad 40, amicroprocessor MMSB 38 (such as Microchip PIC 16C924 or TI MSP430F135),a 10-digit alphanumeric LCD 24 and a flat lithium battery 48 are alsomounted on the bottom side of PCB 18.

[0091] The circuit pattern layout for the 16-key keypad 26 is delineatedon the top side of PCB 18. Two contact switches 44 and 46 in line withthe magnetic stripe simulator 32 are also fabricated on the top side ofthe PCB 18. Either one of these two contact switches 44 or 46 is used toprovide in one embodiment of the present invention the correct timingfor the MMSB 38 to transmit the track 2 data in storage to the magneticcard reader via the magnetic stripe simulator 32.

[0092] Finally the laminated polymer layer 20 with an opening 22 forallowing the protrusion of the LCD 24 to be flush with the top surfaceof this layer completes the composite structure of the MSB. The 16-keykeypad buttons, of which 28 is typical, are delineated on the top sideof this laminated layer 20 with the individual conducting pads, of which48 is typical, for each of the keypad keys fabricated on the bottom sidein correct registration with the circuit layout for the keypad 26 on thetop surface of the PCB 18.

[0093]FIG. 5 shows in highly schematically form the circuit layout forthe MSB. The microprocessor MMSB 38 is the nerve center for the MSB. Itsfirst important function is to establish communication with the smartchip residing on the smart card. In operation, when the smart card 30 isinserted fully into the side slot 16 of the MSB (see the dashed lines ofFIG. 3), the contact switch 36 is closed thereby waking up the entirecircuit of the MSB. Power is now available through the thin lithiumbattery 42 in concert with the flexible contact pad 40 to the smart chipof the smart card (see FIGS. 1 and 2). Then the MMSB 38 will initiate anAnswer-To-Reset (ATR) protocol to the smart chip according to ISO 7816standard through the RST pin of the latter. After the smart card 30responds to this signal indicating that the communication between theMMSB 38 and the smart chip of the smart card is operational, the MMSBwill effect a message “ENTER PIN” to the 10-digit alphanumeric LCDdisplay 24 to appear.

[0094] The cardholder (or user), upon seeing this instruction appearingon the LCD display 24, can now enter his or her 4- or 6-digit PIN numberusing the keypad 26. Upon receiving this PIN number, the MMSB 38 willrelay this PIN number to the smart card with the instruction to verifythe validity of this data. In the event that this PIN number is valid,the smart card will relay this information back to the MMSB 38 and atthe same time send over the track 2 data which is stored in the EEPROMof the smart chip to the MMSB 38 using its I/O pin. MMSB 38 acknowledgesthe receipt of this data and effects a message “OK 4 READER” to appearon the LCD 24. At this point the smart card 30 has played out its rolein the transaction and it can be pulled out of the side slot 16 of theMSB for safekeeping.

[0095] In the event that the PIN number is invalid, the smart card willrelay this message to the MMSB 38. MMSB 38 will acknowledge and effect amessage “TRY AGAIN” to appear on the LCD 24. The cardholder can enterhis or her PIN number again using the keypad 26. When the smart cardreceives a predetermined number of consecutive invalid PIN numbers(three, for example), it will relay this message to the MMSB 38 and atthe same inform the latter that it will no longer verify any more PINnumbers. MMSB then effects a message “INVALID PIN” to appear on the LCD24 and at the same time shuts itself off and blanks the LCD 24. However,to reactivate the MSB after its shutdown, one simply has to pull out thesmart card from the side slot 16 (if it is still engaged with the MSB)and re-insert it to resume operation. If the smart card has already beenpulled out of the MSB, one simply re-inserts the smart card to achievethe same result.

[0096] When the message “OK 4 READER” appears on the LCD 24 indicativethe fact that the MMSB 38 has correctly received and stored all thetrack 2 transaction data information from the smart card, the MSB haseffectively taken over the role as the “magnetic-card-reader-admissiblesmart card”. The merchant or sales clerk can now treat the MSB as if itis a valid magnetic credit card transformed from the smart card. Thereis, however, a finite life to this condition. Time-out logic circuitrywithin the MMSB 38 establishes a predetermined duration after which themost recently stored data is purged and the MSB is returned to itsinactive, quiescent state. Intervals on the order of 3-10 minutes arecontemplated for this sunset or time-out feature. In one preferredembodiment of the MSB, the merchant can simply swipe the thin section 12(of FIG. 3) of the MSB through the magnetic card reader. Depending uponwhich direction the merchant is swiping the MSB through the magneticcard reader slot, either contact switch 44 or 46 will close. Thisclosure is processed to generate the correct timing information to theMMSB 38 to ensure that the track 2 data will be reliably transmittedover to the reader head through the use of the magnetic stripe simulator32. The transaction will then be put through to the existing magneticcard processing infrastructure like any conventional magnetic creditcard.

[0097] In an alternate preferred embodiment of the MSB, the merchant cansimply place the thin section 12 (of FIG. 3) of the MSB into the slot ofthe magnetic card reader from the top and approximately center it in themiddle of the reader where the reader head is located. He then pushesone of the designated key buttons on the keypad 26 of the MSB toinitiate the process of sending the data over to the magnetic cardreader via the magnetic stripe simulator 22.

[0098] In either of the two preferred embodiments of the MSB describedabove, the merchant can “swipe” or “center and push button” the MSBseveral times just like he is handling an ordinary magnetic credit card.

[0099] Finally, as discussed earlier above, the present invention of theMSB and the methodology is not limited just to transform a smart cardinto a magnetic-card-reader-admissible card and thereby taking fulladvantage of the security attributes of the smart card to significantlyreduce financial card frauds and identity thefts without having tochange the current magnetic card processing equipment andinfrastructure. It is evident from FIGS. 3 and 5, the so-called thinsection 12 of the MSB can accommodate not just one, but three or moremagnetic stripe simulators since the typical width of the latter is only0.120″ and the thin section is about 1.000″. Since any data stored inthe smart chip is secure, one's personal and vital medical records cancertainly be safely stored there. These secure data can be outputted forexample through track 3, much like the case for track 2 of the MSB uponthe entering of a special medical PIN number (as contrast to a financialPIN number) by the cardholder or other authorized personnel. Thismedical PIN number can be arranged to be only accessible to certainauthorized health professionals such as operators of ambulances and themedical staff of emergency care centers where relatively inexpensive(<$100) magnetic track 3 readers are made available and maintained. Thisis but one example to show how the magnetic card world can be expandedfor use in other information areas when linked to the world of the smartcards through the use of the present invention.

[0100] Whereas the above described baseline and alternate preferredembodiments of FIGS. 1-5 and 11 are directed to interfacing smart cardswith existing, conventional lateral-type magnetic card readers, thetechniques taught therein may be extended to enable an even moreadvanced embodiment to be also used with ATM-type card readingterminals. This is accomplished in an improved preferred embodimentdetailed in connection with FIGS. 6 through 11.

[0101] Referring first to FIG. 6, there is shown a preferred advancedembodiment of a magnetic stripe bridge adapted for use with both lateralswipe-type readers as well as with ATM-type terminals which require asubstantially full longitudinal insertion of the proffered card. Anadvanced magnetic stripe bridge AMSB is shown in partially explodedoverall system form to pictorially indicate its method of use. The AMSBis shown in its fully extended state ready to receive a smart card suchas one of the kind previously described in connection with FIG. 2A. Aswith the previously described versions, the AMSB has a casing 110, asmart card receiving slot 116, an alphanumeric display 124 and a keypad126. An extension member 150 is shown as including a credit card sizedportion 1 50A and a shorter connecting portion 1 50B. By way of a briefoperating overview, a user first: <--(A)-- pulls out the extensionmember 150 to its maximum extent; then --(B)--> inserts his or her smartcard 130 into the slot 116; and then <--(C )-- inserts the auser-related validating PIN number using the keypad 126 responsive toreceiving a visual prompting message on the LCD display 124. Thereupon,presuming a successful system validation/authorization step, <--(D)--the credit card sized portion of the extension member 150 is insertedlongitudinally into the ATM-type terminal slot to thereby complete thedesired transaction as usual. Just prior to step (D), the smart card 130may optionally remain in the slot 116, or preferably is removed by thecard holder for safekeeping. For use with lateral, swipe-type readers, aslightly different but still few-step method is used. Followingcompletion of the same steps (A) through (C) as shown in FIG. 6, andafter receipt of the validation/authorization prompt, the user merely--(E)--> retracts the extension member 150 back to its fully retractedposition (as shown and described in FIG. 7A) and then --(F)-- laterallyswipes the exposed, lower portion of the extension member 150 through aconventional magnetic card reader to thereby complete the desiredcard-authorized transaction as usual.

[0102] Note that the direction of the arrow <--(D)-- denotes thelongitudinal axis for both the AMSB and the overall system axes for allembodiments described herein, and further that the direction of thearrow --(B)-- denotes the orthogonal lateral AMSB/MSB/system axes. Thecard readers described (ATM, swipe, etc.) do not form part of thepresent invention, nor do any of the various types cards with which theinvention operates.

[0103] Referring now to FIG. 7A, there is shown a schematic top (orfrontal) view of the advanced AMSB with its extension member 150occupying a first normal (or storage) position suitable for use with aswipe-type card reader. The side view of FIG. 7B illustrates thelocation, orientation and extent of the of the portion of extensionmember 150 which is external to the casing 110. In FIG. 7A, a magneticstripe simulator 132 and contact switches 144, 146 (and 153 for theadvanced preferred embodiment), now reside on the extension memberportion 150A. Also on the extension member portion 150A is anothercompletely independent magnetic stripe simulator 152. As explainedbelow, magnetic stripe simulator 132, now designated as the lateralmagnetic stripe simulator, is used for the swiping motion type cardreaders, whereas the magnetic stripe simulator 152, now designated asthe longitudinal magnetic stripe simulator, in conjunction with thecontact switch 153 is used for the insertion type card readers. The AMSBis shown in its so-called normal position or state wherein it isoperable for swipe-type usage as previously described. When retracted asshown by the arrow --(E)-->, detent means (not shown) may be used toretain the extension member 150 in the desired positions. Also, thecircuit elements of FIG. 7A which are embedded within the extensionmember portion 150A are not shown in phantom, merely for clarity ofexposition, and that a minute speaker 123 is positioned on the face ofthe casing 110 to provide audible signals which may add to or substitutefor the prompting messages provided on the LCD display 124. Smallindicator lamps, of which lamp 125 is typical, may further be carried onthe casing 110 face to provide additional visual status clues or promptsfor a bridge user.

[0104] Note that the numerical designations of the advanced embodimentsof FIGS. 6 through 10 are assigned in the 100 series, with the last twodigits corresponding to those elements previously described inconnection with the embodiments of FIGS. 1 through 5. Unless otherwisenoted, the 100 series elements function virtually identically to theirlower numbered cousins thereby not requiring further description.

[0105] Referring now to FIG. 8A (FIG. 8B is a side view thereof), whenit is desired that the AMSB device be used for service, the extensionmember 150 is pulled out to its maximum extent, and held there by detentmeans (not shown). By doing so, the extension member 150 vacates thespace within casing 110 such that the smart card 130 can be inserted forverification. After the card holder enters the PIN number via the keypad126 and receives authentication to proceed on the LCD display 124, andpossible audio prompts from the speaker 123 as well, he or she has achoice to make depending upon whether the swiping motion type magneticcard reader or the insertion type magnetic card reader is being used.For use with a swiping motion type reader, the cardholder has to removethe smart card and push the extension member 150 back to its original ornormal position as was shown in FIG. 7A. In doing so, AMSB circuitrydetermines that the magnetic stripe simulator 132 is to be used.Additionally, contact switches 144 and 146 can also be used to implementthe conventional swiping motion of the AMSB, as previously described.

[0106] For use with an insertion type reader, the cardholder can simplyinsert the fully extended portion 150A into the insertion slot of a cardreader until it cannot go any further. In this case, the magnetic stripesimulator 152 will be used in conjunction with contact switch 153.Contact switch 153 in this case is tied electrically to contact switch146 whereas contact switch 144 is no longer in use in this mode ofoperation. The function of contact switch is to alert the microprocessorin the AMSB that the magnetic stripe simulator is now in its properposition for the processor to transmit track 2 magnetic stripe data tothe card reader via the magnetic stripe simulator 152. Much like thecase for electrically contacting the smart card with the flexiblecontact pad 140 (as described in connection with element 40 of FIG. 4)which resides on the opposite side of the PCB 118, contacts which matewith the contact switches 144 and 146, namely 154 and 156, as well ascontacts 155 and 157 to the magnetic stripe simulators 132 and 152,namely 165 and 167 also reside on the same side of the PCB 118.

[0107] Referring now to FIG. 9 there is shown a highly schematic,3-dimensional, partially exploded view of the advanced AMSB toillustrate the orientation and spatial relationships of the variouscircuit layers and related components. The perspective is such that onlythe slot 116 for insertion of the smart card is shown but not the carditself. Note the overall layout similarity with the earlier embodimentdescribed in connection with FIG. 4, and especially the functioning ofthe correspondingly numbered elements. Also, the magnetic stripesimulators 132 and 152 and the contact switches 144, 146 and 153 canalso be seen as residing on the extension portion 150A. The location ofmating contacts 164-167 on PCB 118 are also shown.

[0108] Referring now to FIG. 10, an additional highly schematic planarrepresentation of the circuit layout of the advanced AMSB is shown. Toaid in interpretation the spatial relationships and the orientation ofthe various components, components on several layers/sides have beenpartially overlaid. Note the overall layout similarity with theembodiments described in connection with FIG. 5, as well as the similarfunctioning of the correspondingly numbered elements as previouslydescribed. Conspicuously missing from PCB 118 is the magnetic stripesimulator. Taking its place are two contact pads 165 and 167 whichcommunicate with the microprocessor 138. Further shown are contact pads164 and 166 which also directly communicate with the microprocessor 138.Note that contact pads 164-167 serve similar functions as the flexiblecontact pads previously mentioned, that is, they make contacts with themagnetic stripe simulators 132 and 152, and also with contact switches144, 146 and 153 which reside on the extension member portion 150A.

[0109] Referring now to the system flow chart of FIG. 11, there aredetailed the multiple steps used to implement the various steps andprocesses needed to support the all embodiments of the presentinvention. The steps include activating the MSB (or AMSB) in ‘start’block 210, followed by insertion of a smart card in block 212,corresponding to the step --(B)--> of FIG. 6. Thereafter, the processsteps as set forth in the specification above are carried out to reach asuccessful initiation and completion of a desired card-authorizedfinancial or data transfer transaction in the ‘end’ step of block 232.Note the ‘five try’ PIN number limitation as carried out in the closedloop process in blocks 218, 234, 236, 238 and 240.

[0110] Although the invention has been described in terms of preferredand selected alternate embodiments plus advanced preferred embodiments,the invention should not be deemed limited thereto since otherembodiments and modifications will readily occur to one skilled on theart. It is therefore to be understood that the appended claims areintended to cover all such modifications as fall within the true spiritand scope of the invention.

1. A method for carrying out a card-authorized financial or datatransfer transaction by interfacing a smart card with magnetic cardreaders of distinct types, comprising the steps of: (a) providing amagnetic stripe bridge having a slot for receiving a smart card,processing circuitry for electronically performing a plurality ofmethod-supporting steps, user-actuated input means, a user-actuableextension member movable to first and second exposed positions, and atleast one magnetic stripe simulator; (b) inserting said smart card intosaid bridge slot while said extension member is in a second exposedposition for allowing an authorization evaluation step by saidprocessing circuitry; (c) entering a user-known PIN via said input meansto allow the conduct of said authorization evaluating step by saidprocessing circuit, and upon successful completion thereof; and (d)longitudinally inserting said extension member in its second exposedposition into an insertion-type card reader for transmission of magneticstripe simulation signals provided by said processing circuitry therebyenabling a card-authorized transaction.
 2. The method of claim 1 whereinsaid provided bridge further comprises processing circuit driven meansfor indicating the operating status of said method and for providingmethod-facilitating prompts, whereby a user may timely insert said cardand/or timely enter said PIN and/or timely insert said extension member.3. The method of claim 2 wherein said means for indicating include oneor more indicators selected from the group containing a multi digitalphanumeric display and a speaker and color coded indicator lamps,whereby a user may more readily be facilitated in timely inserting saidcard and/or timely entering said PIN and/or timely inserting saidextension member.
 4. The method of claim 1 wherein said input meansincludes a multiple key keypad such that a bridge user may more readilyenter said PIN.
 5. The method of claim 1 wherein said at least onemagnetic stripe simulator is configured to include two orthogonallyoriented magnetic stripe simulators whereby with said extension memberin its second position said card may be inserted into said slot forauthorization evaluation and following successful evaluation saidextension member may be moved to its first exposed position andpresented laterally to a swipe-type card reader for transmission of saidsimulated magnetic stripe signals via a suitable oriented magneticstripe simulator, thereby enabling a card-authorized transaction.
 6. Asystem for interfacing a smart card with magnetic card readers ofvarious or distinct types, comprising: (a) a magnetic stripe bridgehaving a slot for receiving a smart card and further having processingcircuitry for electronically interfacing with said card and for carryingout other system functions; (b) said bridge further having user-actuatedinput means operatively connected to said processing circuitry forentering a user-related PIN for authorization evaluation by saidprocessing circuitry; (c) said bridge further having a user-actuableextension member operatively connected to said processing circuitry,said member movable to first and second exposed positions, said memberincluding at least one magnetic stripe simulator for producing signalsoperable responsive to said processing circuitry; and (d) whereby withsaid extension member in its second exposed position said card may beinserted into said slot for authorization evaluation and followingsuccessful evaluation said extension member may be presentedlongitudinally into an insertion-type card reader for transmission ofsaid magnetic stripe simulated signals thereby enabling a desiredcard-authorized transaction.
 7. The system of claim 6 wherein saidbridge further comprises indicator means operatively connected to saidprocessing circuitry for indicating the operational status of saidbridge and for prompting a user, thereby facilitating the successfulinitiation and completion of a desired card authorized financial or datatransfer transaction.
 8. The system of claim 7 wherein said indicatormeans includes a LCD alphanumeric display.
 9. The system of claim 6wherein said input means includes a multiple pad keypad.
 10. The systemof claim 6 wherein said at least one magnetic stripe simulator isadapted to include two orthogonally oriented magnetic stripe simulatorswhereby with said extension member in its second exposed position saidcard may be inserted into said slot for authorization evaluation andfollowing successful evaluation said extension member may be moved toits first exposed position and presented laterally to a swipe-type cardreader for transmission of simulated magnetic stripe signals via asuitable oriented magnetic stripe simulator, thereby enabling a desiredcard-authorized transaction.